Good news for people looking to optimize their savings and taxation: the Federal Council has announced an increase in the maximum deductible amounts for The 3rd pillar in 2025. This development aims to offset inflation and to offer additional tax deduction opportunities for private pension plans, thus allowing greater tax savings compared to previous years.
The maximum deductible amounts of the 3rd pillar 3a in 2025
Here are the maximum amounts that can be deducted from 1 January 2025 for the 3rd pillar 3a:‍
Maximum amount deductible in 2025 :
7'258 CHF per year.
For employees affiliated to a pension fund (LPP)
‍36,288 CHF By year
or 20% of net annual income for self-employed persons or employees not affiliated to a pension fund
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‍Important: The new ceilings only apply from 1 January 2025. Until December 31, 2024, make sure you do not exceed the current maximum amounts of CHF 7,056 or CHF 35,280 for the 3rd pillar 3a.
— Source: Federal Department of Finance, Federal Tax Administration AFC
Why the increase in ceilings?
The Federal Council generally adjusts the maximum amounts of 3rd pillar 3a every two years. These adjustments are based on the evolution of the wage index and the consumer price index. The objective is to maintain the savings power of citizens in the face of inflation and the increase in the cost of living.
“The Federal Council uses the arithmetic mean of the wage index and the price index to determine these adjustments.”
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— Source: Federal administration
Until when should you make your payments for pillar 3a?
To benefit from tax deductions on your payments into the 3rd pillar, it is essential that the funds be deposited into your 3rd pillar before December 31. What matters is the value date: if it falls in the following year, the amount will not be taken into account for the current year. Even if the payment order was placed before the end of the year, it may happen that the credit does not appear until the beginning of the new year, making it impossible to deduct.
To avoid any unpleasant surprises, it is recommended that you make your payment into your 3rd pillar before Christmas. This gives you leeway in the event of a delay or processing error by your financial service provider. Do not hesitate to check directly with your bank or insurance company to make sure that the payment has been registered before the deadline. Note that a late payment cannot be counted retroactively for the previous year, even if it is a small error in the deadline.
How can you optimize your 3rd pillar payments?
Divide your payments across several accounts
Dispose of multiple pillar 3a accounts has a strategic advantage: by spreading your withdrawals over several years, you can reduce Capital tax at the time of withdrawal. You are allowed to pay into different 3rd pillar 3a accounts, but it is important to respect the annual limit. The cumulative amount of your payments must not exceed the maximum authorized, or 7,258 CHF for employees affiliated to a pension fund and 36,288 CHF for the self-employed in 2025.
Compare the offers of service providers
Whether you already have a 3rd pillar or are looking to open a new one, comparing offers is an essential step. Pillar 3 products vary considerably in terms of benefits and returns. Each provider offers different options, including various investment funds, varied interest rates and performances that may vary depending on the investment strategies.
With our 3rd pillar comparator, evaluating the best offers is quick and easy. You can analyze your current 3rd pillar to see if there are better alternatives or open a new 3rd pillar with the assurance of getting the best deal available for 2025.
History of the evolution of the maximum amounts under the 3rd pillar
The Federal Council generally reviews the maximum contribution amounts every two years. In the past, they were set to:
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Conclusion
The increase in the maximum deductible amounts under the 3rd pillar in 2025 is an excellent opportunity to strengthen your pension provision while benefiting from increased tax advantages. Anticipate your payments now to optimize your savings and use our online comparison tool to ensure you have the best 3rd pillar in 2025.
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